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In Short
- A personal grievance is a formal complaint an employee can raise under the Employment Relations Act 2000- commonly for unjustified dismissal, disadvantage, discrimination or harassment, and employees generally have 90 days to raise it (12 months for sexual harassment).
- When you receive a grievance, act promptly: stay calm, acknowledge it, preserve relevant records and seek legal advice.
- Handle the process in good faith, consider resolution options like mediation, and avoid retaliation or breaching procedural requirements.
Tips for Businesses
Respond quickly and professionally to grievances: acknowledge receipt, gather documentation, and engage in early dialogue or mediation. Always act in good faith and seek employment law advice to understand your obligations and potential outcomes. Maintaining clear policies and records can reduce risk and support fair resolution.
Receiving a personal grievance can be a stressful experience for any business owner or manager. Understanding how to respond appropriately is crucial, as mishandling a grievance can lead to financial penalties, damage to your business reputation, and time-consuming proceedings. This article provides practical guidance on what steps you should take when your business receives a personal grievance, helping you navigate the process effectively while minimising risk to your business.
Understanding Personal Grievances
A personal grievance is a formal complaint raised by an employee under the Employment Relations Act 2000. Common types include claims of:
- unjustified dismissal;
- unjustified disadvantage or action;
- discrimination; and
- sexual or racial harassment.
Employees typically have 90 days from when the grievance arose (or when they became aware of it) to raise their concerns. In the instance of sexual harassment, employees have 12 months to raise this.
You should act promptly when a grievance is raised.
Immediate Steps to Take
When you receive a grievance from an employee, your initial response is critical. This includes, but is not limited to:
- Stay calm and avoid panicking: Take time to assess the situation carefully before responding.
- Acknowledge the grievance promptly: Even if you dispute the allegations, confirming receipt shows you are taking the matter seriously and helps maintain open communication.
- Preserve all relevant records: Secure documents related to the employee and the issue, including employment contracts, correspondence, performance and disciplinary records, timesheets, wage records and relevant policies.
- Seek legal advice early: Grievances can involve complex legal and procedural requirements. An employment lawyer can help you understand your obligations and develop an appropriate response strategy.
Assessing the Grievance
Once you have taken these initial steps, work with your legal adviser to carefully assess the grievance. Consider whether there is any merit to the employee's claims by reviewing:
- the procedures you followed; and
- whether you comply with the employee's employment agreement, your company policies, and the requirements of good faith.
Even if you believe your decision was substantively correct, procedural failings can still result in a successful personal grievance.
Consider the potential risks and costs, such as what it would cost your business if the employee succeeded. Factor in not just potential compensation, but also legal costs, management time, and reputational damage.
The Importance of Good Faith
Throughout the personal grievance process, you must act in good faith. Good faith can mean several things, such as:
- being active and constructive;
- responsive and communicative; and
- acting honestly and openly.
Do not ignore the employee or refuse to engage with their concerns.
Even if you believe the grievance is without merit, you must still respond appropriately and consider whether the matter can be resolved.
Resolution Options
Most personal grievances are resolved through negotiation or mediation. Mediation is a confidential process facilitated by a neutral third party where both sides can discuss the issues and explore settlement options. One thing to note is that before a claim is heard by the Employment Relations Authority, it will refer parties back to mediation before proceeding any further.
Consider what remedies might be appropriate. These could include:
- an apology;
- changes to policies or practices;
- reinstatement (in dismissal cases);
- compensation; or
- a combination of these options.
Even if you believe the grievance lacks merit, sometimes a commercial settlement can be the most pragmatic solution when you weigh up the costs, risks, and time involved in defending the claim.
What Not to Do
Avoid these common mistakes:
- do not retaliate against the employee for raising a grievance;
- do not discuss the grievance with other employees unnecessarily. Maintain confidentiality and professionalism;
- do not attempt to pressure the employee into withdrawing their grievance or accepting an unreasonable settlement; and
- do not ignore deadlines or procedural requirements. Missing timeframes can weaken your position.
Employment Essentials Factsheet NZ
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Moving Forward
Whether the grievance is resolved through settlement or proceeds to formal determination, use the experience as an opportunity to review your employment practices. Consider whether your policies need updating, whether managers need additional training, or whether your documentation and record-keeping systems need improvement.
Good employment practices go beyond avoiding grievances and focus on resolving issues early through a positive workplace culture.
Key Takeaways
Personal grievances are a serious matter, but they do not need to derail your business operations. The key is staying calm and responding professionally. The most important step is to get legal advice early, so you understand your obligations and options. Most grievances are resolved through constructive conversation rather than lengthy court battles. By approaching the matter with a clear head, acting in good faith, and being open to resolution, you will be in the best position to protect your business and move forward.
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Frequently Asked Questions
How long does an employee have to raise a personal grievance?
Generally, employees have 90 days from when the grievance arose (or when they became aware of it) to raise their concerns. For sexual harassment claims, employees have 12 months.
Will a personal grievance automatically go to court?
No. Personal grievances can be resolved through negotiation or mediation without reaching the Employment Relations Authority or court. Mediation is often required before formal proceedings can continue, and many disputes settle at this stage.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
